More Stories

Informist, Friday, Jan. 23, 2026

 

--India Jan flash composite PMI output index 59.5 vs 57.8 Dec final 

--India Jan flash services PMI activity index 59.3 vs 58.0 Dec final 

--India Jan flash manufacturing PMI 56.8 vs 55.0 Dec final 

 

NEW DELHI – Growth in India's private sector activity recovered in January, after having lost momentum at the end of 2025, with quicker increases in new orders and output, and higher job creation, S&P Global said Friday. The HSBC Flash Composite Purchasing Managers' Index rose to 59.5 in January from 57.8 in December.

 

Activity picked up in both the manufacturing and services sectors. The flash manufacturing PMI rose to a three-month high of 56.8 in January from the final print of 55.0 in December. The flash services PMI rose to 59.3 in January from 58.0 in December. A PMI reading of more than 50 denotes expansion in activity from the previous month, while a print below 50 indicates contraction.

 

"Despite the rise in the manufacturing PMI, January's figure remained below the 2025 average," Pranjul Bhandari, chief India economist at HSBC, said. "After losing some momentum at the end of 2025, new orders rose more rapidly – led by a faster pick-up in domestic orders. Input cost pressures rose quickly, though more for goods producers than for service providers."

 

A faster expansion in overall new business intakes underpinned the higher growth of private sector activity in January, S&P Global said. Firms saw higher sales on the back of strengthening demand conditions and aggressive marketing campaigns. Manufacturers saw a quicker upturn than service providers, though growth picked up pace in both cases, S&P Global said. 

 

Aggregate international orders saw the biggest rise in four months in January. Asia, Australia, Europe, Latin America and the West Asia were some of the main destinations for Indian goods and services this month,

 

As sales picked up, hiring across the private sector also resumed in January after no change in employment during December. "Although slight, the pace of job creation was broadly aligned with the series trend. Anecdotal evidence showed that recruitment stemmed from efforts to better align resources with business requirements," S&P Global said. 

 

Input prices at the composite level rose at the quickest pace in four months during January, though still modest by historical standards, S&P Global said. Cost pressures were more pronounced in the services sector. The rate of output price inflation saw the fastest increase in three months in January.

 

"Survey participants suggested that rising input, labour and transportation costs were transferred to clients amid efforts to protect margins. They particularly reported greater outlays on food (egg, meat and vegetables), fuel and steel," S&P Global said.

 

The firms surveyed were optimistic about the 12-month outlook for business activity. The overall level of positive sentiment rose to a three-month high, S&P Global said. "Boding well for growth prospects, according to panellists, were efficiency gains and demand buoyancy. Allocated marketing budgets and favourable exchange rates were also identified as tailwinds."  End

 

Reported by Shubham Rana

Edited by Avishek Dutta

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.